Microsoft CEO Satisfied With a Time Warp
The most well-known computer software developer in the world, microsoft is perhaps best known for its Windows operating system, Office family of productivity applications and related services and tools, Internet Explorer and subsequent Microsoft Edge web browsers, and Visual Studio IDE (Integrated Development Environment). But the company also offers cloud platforms such as Azure, virtual reality hardware like HoloLens, and even a line of tablet computers called Surface.
The company was founded in 1975 by Bill Gates and Paul Allen, two boyhood friends from Seattle. They converted BASIC, a popular mainframe computer programming language, for use on an early personal computer, the Altair 8800, and founded Microsoft to develop other software. Microsoft later diversified into computers, software, and computer peripherals, then branched out into the digital services market through the launch of MSN in 1995, the search engine market with Bing, the mobile phone market with Nokia, and the cloud computing market with Azure.
But in the past decade or so, Microsoft has seemed stuck in a time warp, unable to adapt its business model to changing consumer and technology trends. The desktop software market has shifted to web-based programs such as Gmail, and the rise of smartphones has made it less necessary for many people to carry around a laptop or tablet. Meanwhile, Microsoft’s stock has languished, despite the fact that it still dominates the IBM PC compatible operating system market and the office software suite market.
In response, Nadella has taken a bold gamble: He has placed the company’s future on artificial intelligence, an area in which it has invested billions and that, in some cases, is producing real-world consequences. For example, a bug in Microsoft’s artificial intelligence software impacted the check-in and booking systems at Allegiant Airlines, causing delays and increasing costs for both passengers and the airline.
In addition, a bug in Microsoft’s bot software called Skype was found to be allowing hackers to masquerade as users and rummage through their “crown jewels,” including national security secrets, corporate intellectual property, and embarrassing personal emails, without raising any alarms. The ramifications of such attacks are significant, and they illustrate the importance of Microsoft’s investment in AI and the need to keep its software up to date with the latest security protocols. The company has begun to focus more on security with recent releases of the Office 365 suite of productivity apps and the security features in its cloud-based Azure platform.
